Mr. Shaikh Shoyab T.

Sahakar Maharshi Bhausaheb Santuji Thorat College of Arts Science and

Commerce, Sangamner

Co-operative final Account

1. Which of the following jobs check accounting in ledgers and financial statements?

(A) Financial

(B) Audit

(C) Management

(D) Budget Analysis

2. The process of accounting is needed to I. take a holiday II. assist in decision making III.
invest in start up of a business IV. track money spent

(A) I, II and III

(B) I, II and IV

(C)I, III and IV

(D)II, III and IV

3. Which of the following describes the practical framework of bookkeeping?

(A) Classifying, recording and summarizing

(B) Reporting, analyzing and interpreting

(C)Classifying, analyzing and interpreting

(D)Recording, summarizing and reporting

4. Which of the following principles assumes that a business will continue for a long time?

(A) Historical cost

1 ASST. PROF. SHAIKH SHOYAB T.

M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464
(B) Periodicity

(C)Objectivity

(D)Going concern

5. Which of the following users assesses the attractiveness of investing in a business?

(A) Tax authorities

(B) Financial analysts

(C) Bank

(D) Employees

6. Accountants use Generally Accepted Accounting Principles (GAAP) to make the financial
information communicated I. relevant II. reliable III. comparable IV profitable

(A) I, II and III

(B) I, II and IV

(C)I, III and IV

(d)II, III and IV

7. One of the detailed rules used to record business transaction is

(A) Objectivity

(B) Accruals

(C) Double entry book keeping

(D)Going Concern

8. The diagram below refers to item 8.

1. sorting and classifying business documents 2. recording transactions in Books of Original

entry 3. poset transactions to accounts in the ledger 4. --------------- -----5. make adjustments
6. prepare adjusted trial balance 7.--------------

Numbers 4 and 8 in the diagram represents

(A) prepare a cheque and extract a Trial balance

2 ASST. PROF. SHAIKH SHOYAB T.
M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464
(B) extract a trial balance and prepare final reports

(C) prepare final reports and prepare a cheque

(D) extract a trial balance and prepare a voucher

9. Which of the following highlights the correct order of the stages in the accounting cycle?

(A) Journalizing, final accounts, posting to the ledger and trial balance

(B) Journalizing, posting to the ledger, trial balance and final accounts

(C)Posting to the ledger, trial balance, final accounts and journalizing

(D)Posting to the ledger, journalizing, final accounts and trial balance

10. Dividends are paid by I. Sole trading businesses II. Partnership companies III. Limited
Liability companies IV. Co-operatives

(A) I and II

(B)I and III

(C)II and III

(D)III and IV

11. Which of the following companies has to pay corporation tax?

(A) Co-operative society

(B)Limited liability Company

(C)Partnership Company

(D) Sole trading company

12. Which of the following companies has unlimited liability?

(A) Sole trading company

(B)Co-operative society

(C)Limited liability Company

(D)Partnership Company

13. The Trading and Profit and Loss account is also called

3 ASST. PROF. SHAIKH SHOYAB T.

M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464
(A)Balance Sheet

(B)Cash Flow Statement

(C)Income Statement

(D)Trial Balance

14. The elements of the accounting equation are I. Assets II. Liabilities III. Trial Balance IV.
Capital

(A) I, II and III

(B)I, II and IV

(C) I, III and IV

(D)II, III and IV

15. Which of the following are assets? I. Cash and cash at bank II. Land and fixtures III. Loans
and creditors IV. Mortgage loans and debtors

(A) I and II

(B)I and III

(C)I and IV

(D) II and III

16.The following balances refer to Item 3 T. Singh’s Assets and Liabilities

Machinery 20 000

Cash in hand 2 000

Land and buildings 200 000

Bank loan 50 000

Creditors 5 000

Debtors 10 000

What is T. Singh’s capital?

(A) $55 000

4 ASST. PROF. SHAIKH SHOYAB T.

M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464
(B) $177 000

(C)$232 000

(D)$287 000

. The following balances refer to Items 4 and 5 P.

Stevens Balance Sheet

As at December 31, 2020

LIABILITIES ASSETS
Capital 100 000 Premises 100 000
Bank loan 95 000 Accounts receivable 10 000
Creditors 5 000 Cash 5 000
Furniture 20 000
Stock 10 000
Bank 55 000

17. What is P. Steven’s total current asset?

(A) $60 000

(B) $80 000

(C)$120 000

(D)$200 000

18. What is P. Steven’s total liability?

(A) $5 000

(B) $95 000

(C)$100 000

(D)$200 000

19. Which of the following items are used to prepare a balance sheet?

I. The name of the firm

II. The name of the financial statement

III. The date it is being prepared

5 ASST. PROF. SHAIKH SHOYAB T.
M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464
IV. The style use for the preparation of the statement

(A) I and II

(B) I and IV

(C)I, II and III

(D)I, III and IV

ANSWERS

1. B

2. D

3. A

4. D

5. B

6. A

7. C

8. B

9. B

10. D

11.B

12. A

13. C

14. B

15. A

16. B

17. B

18. C

19. C
6 ASST. PROF. SHAIKH SHOYAB T.
M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464
1. Arielle W. bought furniture on credit from Chanel. Which of the following journal entries
will be made for this transaction in Arielle W. books?
(A) Dr. Furniture
Cr. Cash
(B) Dr. Purchases
Cr. Arielle W.
(C)Dr. Arielle W.
Cr. Purchases
(D)Dr. Furniture
Cr. Arielle W.

2. The following two T-accounts illustrate a transaction

Bank Account

Rs. 800
Advertisement Account

Rs.800
Which of the following statements describes the information given in accounts?
(A) Advertising paid amounted to $800
(B)Advertising shows a decrease of $800
(C)Bank shows an increase of $800
(D)Bank deposits amounted to $800

3. Which of the following concepts use the rules ‘every transaction affects two or more
ledger accounts?’
(A) Going concern
(B) Double entry book-keeping
(C)Money measurement
(D)Periodicity

4. The purchase of a motor car on credit from Toy Automotive Company for use in a firm
should be recorded as
(A) Dr. Maintenance of vehicle expense
Cr. Toy Automotive Company
(B) Dr. Purchases
Cr. Toy Automotive Company
(C) Dr. Motor vehicle
Cr. Toy Automotive Company
(D) Dr. Motor vehicle
Cr. Cash

5. Which of the following figures represents the balance c/d for the above account?

Cash A/C

7 ASST. PROF. SHAIKH SHOYAB T.

M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464
 Particular Rs. Particular Rs.
Capital 40,000 Drawing 15,000
Sales 15,000 Purchase 20,000
Balance c/d ?????

Total Total
(A) $10 000
(B) $25 000
(C)$30 000
(D)$55 000

ANSWERS
1. D
2. A
3. B
4. C
5. B

1. An item is subject to a 20% trade discount. Its list price is $1 000. What is the sale price?
(A) $200
(B) $800
(C) $1 000
(D)$1 200

2. A debit note is a document made out when goods are

(A) returned
(B) overcharged
(C)sold
(D) undercharged

3. Which of the following books of original entry should be used to record credit sales?
(A) Sales journal
(B) Sales returns journal
(C)Purchases journal
(D)Purchases returns journal

4. Credit notes issued for goods returned to a supplier will be entered firstly in the
(A) General journal
(B) Returns inwards journal
(C)Returns outwards journal
(D)Petty cash journal

5. Dylan J paid Joel and Company $600 to settle an account of $720. What entries should be
made in Joel’s books?
(A) Dr Joel and Company $720
Cr Jules $ 720
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M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464
(B) Dr Discount allowed $ 120
Dr Cash $ 600
Cr Joel and Company $ 720
(C) Dr Cash $ 600
Cr Joel and Company $600
(D) Dr Joel and Company $720
Cr Cash $600
Cr Discount received $120

6. A business operates its petty cash by using the imprest system. At the beginning of the
month, the petty cashier was given $1 000 out of which she spent $800. How much will she
be reimbursed?
(A) $200
(B) $800
(C)$1 000
(D)$1 800

7. Which of the following entries will be entered in the General journal?

(A) Sold goods on credit
(B) Goods purchased and paid by cash
(C)Investment made by the owner
(D) Purchase goods on credit

ANSWERS
1. B
2. D
3. A
4. C
5. B
6. B
7. C

1. Debtor ledger is meant for keeping _________.

A. personal a/c of trade debtors.
B. real a/c.
C. nominal a/c.
D. impersonal/c.
ANSWER: A

2. Creditors ledger is meant for keeping __________.

A. . real a/c.
B. nominal a/c.
C. personal a/c of creditors.
D. impersonal a/c.
ANSWER: C

9 ASST. PROF. SHAIKH SHOYAB T.

M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464
3. Errors can be easily found out if ____________ system is maintained.
A. single ledger
B. self balancing ledger
C. single entry.
D. double entry.
ANSWER: B

167. The amount set aside from P&L a/c is called as _____________.
A. reserve.
B. provision
C. depreciation.
D. fund.
ANSWER: B

4. The amount set aside for meeting future losses is __________.

A. reserve.
B. provision.
C. depreciation
D. fund.
ANSWER: B

5. The amount which is appropriated out of profit is ________.

A. reserve.
B. provision.
C. depreciation.
D. fund.
ANSWER: A

6. Which one of the following is an example of reserve

A. P&L a/c
B. Provision for depreciation
C. Provision for bad debts.
D. Provision for income tax
ANSWER: A

7. Which one of the following is an example of provision

A. Securities premium.
B. Revaluation reserve.
C. Capital reserve.
D. Provision for bad debts.
ANSWER: D

8. Which of the following item gives tax benefit

A. Creation of secret reserve.
B. Creation of capital reserve
C. Creation of general reserve
10 ASST. PROF. SHAIKH SHOYAB T.
M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464
D. Creation of provision
ANSWER: D

9. Reserve is debited to _______.

A. Trading a/c
B. P&L a/c.
C. . P&L appropriation a/c
D. . Manufacturing a/c.
ANSWER: C

10. Provision is debited to _______.

A. Trading a/c.
B. P&L a/c.
C. P&L appropriation a/c.
D. Manufacturing a/c.
ANSWER: B

11. Which one of the following is utilized for distribution of dividend

A. Capital Redemption Reserve
B. Securities premium
C. . Revaluation reserve
D. General reserve
ANSWER: D

12. Reserve which is created out of capital profit is __________. a. revenue reserve.
A. .revenue reserve
B. capital reserve.
C. provision.
D. general reserve
ANSWER: A

13. Reserve which is created out of capital profit is __________.

A. revenue reserve.
B. capital reserve.
C. provision.
D. general reserve.
ANSWER: B

14. Which one of the following is not a specific reserve

A. Debenture Redemption Reserve
B. Dividend Equalization Reserve.
C. General reserve.
D. Investment Fluctuation Fund
ANSWER: C

15. Reserve whose existence is not disclosed in balance sheet is________.

11 ASST. PROF. SHAIKH SHOYAB T.
M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464
A. . P&L a/c.
B. specific reserve.
C. general reserve.
D. secret reserve.
ANSWER: D

16. Secret reserve can be created by __________.

A. debiting P&L a/c.
B. undervaluing assets
C. crediting P&L a/c.
D. crediting P&L appropriation a/c
ANSWER: B

12 ASST. PROF. SHAIKH SHOYAB T.

M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464